China's Chery Builds Cars In Russian Plants Vacated By Western Rivals

Chinese carmaker Chery has begun assembling cars in Russia for domestic sale at three factories vacated by Western automakers, including Volkswagen and Mercedes, according to five people familiar with the matter, as reported by Gleb Stolyarov, Alexander Marrow, and Nick Carey of Reuters.

In addition to importing finished cars into Russia, Chery, which accounts for nearly a fifth of Russia’s passenger car sales, is also importing nearly finished vehicles and completing the assembly at three Russian factories. I Photo: Chery

Chinese car manufacturers have captured more than half of Russia’s car market in terms of sales since most Western automakers exited the country following Moscow’s invasion of Ukraine in February 2022.

Now, Chinese companies are expanding their influence further by increasing their share of Russia's domestic production, underscoring Beijing's growing role in reshaping Russia's manufacturing landscape and economy since the invasion.

In addition to importing finished cars into Russia, Chery, which accounts for nearly a fifth of Russia’s passenger car sales, is also importing nearly finished vehicles and completing the assembly at three Russian factories, according to sources.

Four of the sources, including dealers who manage relationships with the plants, declined to be named as they are not authorized to speak to the media.

China's largest car exporter is likely betting on strong demand as Russia's domestic market struggles with limited output and underused production capacity, the sources added.